this is bbc news. i'm martine croxall. the headlines at 11:00: the prime minister says the budget puts britain on the right path, despite an economic warning from a leading think tank suggesting otherwise. the chancellor did a very good job yesterday. what the chancellor was doing was setting out how we can ensure we can have an economy fit the for the future. the institute for fiscal studies warns that britain is facing an unprecedented squeeze on living standards, and is experiencing two lost decades without pay growth. it looks like we've got at least another five years to go before we get anywhere near to having earnings back where they were in 2008. that is wholly unprecedented. in argentina, families get reports of an explosion on a submarine which went missing over a week ago. an exclusive look inside the saudi hotel where prominent figures continue to be held as part of a campaign against corruption. on newsnight, do animals feel pain

or have emotions? dog owners know the answer to that but mps have been accused of denying that animals can have feelings. if they really believe that war is that fake news? good evening and welcome to bbc news. british workers are facing an unprecedented two decades, without any rise in average earnings according to the leading economic research group, the institue for fiscal studies. it says the forecasts published with yesterday's budget made for "pretty grim reading" with government borrowing still going up and austerity continuing. it's predicted that average earnings in 2022 could still be less than they were in 2008. but the chancellor has said he's confident he can defy the gloomy predictions as our economics editor

kamal ahmed reports. it can all seem little distance, the treasury, the grand office of state but the growth downgrade yesterday is likely to leave millions of people worse off. out shopping, adele and her daughter. it is the struggle making ends meet. adele and her daughter. it is the struggle making ends meetli adele and her daughter. it is the struggle making ends meet. i have been working years and i have not had pay rise at all. i have now had child. everything has gone up. food, bread, gas, electrics. nothing else is going up with it. you are literally working to survive every single day. i asked the head of the institue for fiscal studies my the growth downgrade mattered so much. it might not sound terribly important but when they mean in your

earnings and living standards again to be much lower than you expected, it is time to listen. earnings in the early 2000 and 20s will make this the worst decade notjust in living memory at long time before that as well. the prime minister and the chancellor visiting college offered training people. they say they have delivered successful budget by theresa may knows she has to convince people that the government is on her side. it was aboutjobs government is on her side. it was about jobs the government is on her side. it was aboutjobs the people up and down the country. it is about ensuring people are in work with income for theirfamilies. people are in work with income for their families. that effort to seize their families. that effort to seize the opportunities of the future has two ove rco m e the opportunities of the future has two overcome major hurdle, the living standards squeeze. at the time of the financial crisis, these we re time of the financial crisis, these were the average earnings. they fell sharply. and look at how slow the

recovery has been. by 2022, people could still be earning less on average than they were ten years ago. that is the big question. the government of whatever party, over decades, have simply failed to invest enough in the real thing is that matter, like all skills. the financial crisis to suck so much money out of the economy. and businesses, some of which seem to prefer businesses, some of which seem to p refer to businesses, some of which seem to prefer to rely on cheap labour rather than investing in things like machinery that would make them more efficient and mean they could afford to pay rise for those they employed. tonight, labour supporters gathered in the west midlands and shared jeremy corbyn as he laid out the case against the government. they

have racked up more borrowing and more debt, wages are falling, growth is falling, investment is falling, public services are at risk of closing altogether. people have been helped, the tories say with record employment records and higher living wage. the government was putting finishing touch on the effort of boosting the economy— the industrial strategy. stand by for that next week. the argentine navy says it believes there was an explosion close to the last known location of a submarine that went missing over a week ago, with 44 crew members onboard. the blast, described as abnormal and violent, was detected around the time the submarine sent its last signal. britain is part of a huge international search effort that's underway to locate the vessel. our defence correspondent jonathan beale has the latest. it is known as the silent service but there has been no communication

from the ‘san juan‘ but there has been no communication from the ‘sanjuan‘ and the 44 crew for more than week. the search had reached the critical face with these these submarine would soon be running out of air. now more worrying news, scientists confirmed they have detected an abnormal sound in the water in its last known location. translation: and argentine navy spokesman said it was assured single violent event consistent with an explosion. it is bitter blow for relatives. just a few days ago, they been wrongly told they may have been attem pts been wrongly told they may have been atte m pts by been wrongly told they may have been attempts by the submarines to make contact. now they feel betrayed. translation: i feel cheated. they asked wines, they manipulated us. translation: we have no more saints left to pray to, no more saints to ask. aircraft and ships for more

than half dozen nations have been involved in what is still officially search and rescue mission. at times in heavy seas. this the view from hms protector earlier this week. but so hms protector earlier this week. but so far, nothing. the ‘sanjuan‘ left the southern tip of argentina two weeks ago. it was on 2000 mile journey back when she reported an electrical failure. journey back when she reported an electricalfailure. her last communications, halfway home, was last wednesday. that same day the explosion sound was identified. last wednesday. that same day the explosion sound was identifiedm is very likely to have come from the submarine. there is nothing else in that area that could have caused that area that could have caused that sort of noise. it now seems unlikely that their prayers will be answered. for the families of the 44 cruise, hopes of an miraculous rescue have all but disappeared. dozens of people had to be rescued

from their homes in parts of cumbria and lancashire last night after heavy rainfall caused flooding. more than 70 people were helped to safety after the emergency services received hundreds of calls. the jury at the trial of an army sergeant accused of trying to murder his wife by tampering with her parachute has been discharged, after failing to reach verdicts. emile cilliers — seen here with his wife victoria — had denied all charges. the court had been sitting for seven weeks. the crown prosecution service says it will seek a retrial. one of the killers of the toddler, james bulger, is back in prison while police investigate the discovery of suspected child abuse images on a computer. jon venables, who was ten when he killed the little boy, along with robert thompson in 1993, was freed on licence in 2001. the former labour minister ivan lewis has been suspended by the party while allegations of inappropriate behaviour are investigated. mr lewis denies any wrongdoing or non—consensual behaviour — but says he's sorry if he has

made women who work with him feel "awkward". for the past three weeks 200 of the most powerful and wealthy people in saudi arabia have been held under arrest at the five star ritz carlton hotel in riyadh. it follows an unprecedented anti—corru ption drive by saudi arabia's crown prince, mohammed bin salman. little information has been emerging from inside the hotel but the bbc‘s chief international correspondent lyse doucet has gained exclusive access and has sent this report. we drive in, under police escort, just past midnight. no one entity without official permission. the world ‘s most talked about hotel, the most prestigious in riyadh. i am taking in by saudi officials told not to film faces and record

conversations. in the early hours of the morning, there were still people in the lobby, drinking coffee. as you would find in any other 5—star hotel stop most of the people who have been forced to stay here are keeping to themselves, trying to limitany keeping to themselves, trying to limit any further damage to their reputation. the mobile phones have been taken away from them but ariza hotline available where they can call their lawyers, family members even leading members of the companies they are still trying to keep running. some of the biggest saudi billionaires are under hotel arrest. crown prince mohammed bin salman, at least 11 princesses. delete of the national guard. crown prince mohammed bin salman is driving this spectacular dragnet. for the last two years building files on alleged corruption, abuses of power, while consolidating his own power. i am taken to meet one

suspect. he does not give me his name. he says he spent his time with his lawyer, focusing on his case, i told not to ask about. senior officials conduct thing this crackdown say it is not formal investigation yet. they call it friendly process but it is clearly fraught. we have been told that when people walked here around midnight, they were understandably angry. people thought it would not last but then when they realised they were here to stay, they were furious. almost everyone here, 95%, are willing to make the deal, to give back what is said to be substantial amounts of money in order to get out of here. and so far, seven people have walked free. i was told they prove their innocence. many saudis will come an end to the rampant

corruption in the kingdom. there are risks too. the crown prince risks creating enemies and uncertainties which could endanger the very stability and reforms the kingdom so badly needs. the crown prince hopes eve ryo ne badly needs. the crown prince hopes everyone will be checking out at the end of this year. the longer this ordeal drags on, the more questions will be asked here and abroad about what is going on inside. the european commission has said the uk can no longer host the european capital of culture, in 2023, because of brexit. it says it's only open to countries which arein or applying to be in the european union, european free trade area or european economic area. rosie millard is from the creative industries federation and was going to be one of thejudges. it just seems like itjust seems like the eu throwing its ties out of the rather large

european shaped pram and just saying, well, if you do not want to be part of ask you cannot have one of our lovely things which is the capital of cultures. these are game changes are for the city. they com pletely changes are for the city. they completely change outcomes for the people living in the city and the city itself. it can completely change the way the city looks, he brought in millions of pounds in tourists and investments and the same with liverpool. it was just remarkable and cities want this price. now it's time for newsnight with evan davis. your house is deliberately burnt down. you see your children killed. you run to safety in a neighbouring country. could you be tempted to return to your original home? it's the dilemma that may soon face rohingya muslims. they've experienced terror in myanmar, fled to banlagadesh but now may even be sent back.

we'll ask if a new plan to return the rohingya to myanmar is the right answer for a people who've endured extraordinary suffering. also tonight: it's the day after the budget. our specialist team will take us through the bits they missed yesterday. does anyone really believe animals don't have feelings? come on, really? well, it's been a raging controversy online this week. mps, accused of saying animals are not sentient beings. are they guilty or is it simply a sign of social media hysteria? and... hello, liverpool! liverpool was european city of culture back in 2008. now the european commission says no british cities need apply in the future.

that's brexit, they say. should we be surprised? hello. ten days ago, we presented you with a shocking report from bangladesh on the rohingya muslims who had fled from neighbouring myanmar. the rohingya refugee crisis has been described as a textbook case of ethnic cleansing. pushed out of their own country, the testimony from the refugees was truly harrowing.